Lane, Julia (contributor); Salmon, Laurie A. (contributor); … - 2007
.
Our wage decomposition is now based on five regressions, where the additional
regression is:
(Occ,X) W
iej
= µ … + OCC
j
α + X
e
δ + ε
iej
,
The components of X
e
are dummy variables for industry, county, age, and size.
12
The R …-
squared from this fifth regression is notationally defined as R
2
Occ,X
. Since these explanatory
variables are linear …